IBM starts packing a Blade

Biggish blue has decided to write a cheque for Blade Network Technologies, which makes technology routes data to and from servers in data centers. IBM said it expects the acquisition to close in the fourth quarter and it is not saying how much it paid for the outfit, so don't ask.

It is all part of IBM's cunning plan to boost its data-centre offerings as rivals such as Hewlett-Packard and Oracle expand in corporate computing. Blade Network makes switches to connect servers, storage and networks in data centers, large rooms of computers that handle corporate tasks.

IBM has been buying up companies like crazy this month. It's the third acquisition announced in September. There was a $1.7 billion deal for storage-analytics maker Netezza and a purchase of software maker OpenPages for an undisclosed amount of cash.

Rivals have been making cash by linking networking gear with data centres. IBM might be a little concerned that Cisco Systems, last year released its first blade servers and entered the data-centre market.

Blade's technology is under the bonnet of more than half the Fortune 500 companies. Its biggest rivals have been Cisco and HP.

Blade was spun off from Nortel Networks in 2006. The outfit's main investor is Juniper networks which means that the deal will allow Biggish Blue and Juniper Networks to work more closely in the networking domain.